ASSETS and Liabilities

Hello Readers,

Bheema is neither an avid learner nor an avid reader. This behaviour cost him dearly because he faced a fresh setback called assets and liabilities. The problem was that Bheema was not interested in learning new things or correcting his mistakes. His peaceful life was due to the implementation of Ram’s lesson, which bore fruit only to expire soon. Frustrated Bheema has been caught again in the web of expenditure, for god sake, through his savings this time. Bheema doesn’t know what to do. He fought with his family over the expense issue and took a path to a lonely place, where he sat for hours.

Hours after, his friend Ram comes to Bheema’s home. He gets to know and realizes a new lesson on assets and liabilities has to be taught to his friend. He rushes back with his bike to a lonely place outside of the city. After riding strange paths in his city, he locates Bheema. Bheema doesn’t look at Ram; he is in his thoughts. Is this my fate? What is wrong with me? Am I worthless? etc. He asks himself. Amid this great battle with his family over expenditure, Ram again enters as the hope of light. Even before Bheema could say what happened, Ram began by saying the second lesson was regarding assets and liabilities.

Ram: There are a lot of lessons in Personal finance, not just savings

Bheema: I am not in the mood to listen; keep quiet

Ram: This is the solution to your problem

Bheema: Keep quiet

Ram: You are a stubborn

Bheema Shouts angrily

Ram: You are suffering from a disease. I have bought you some medicine. But if you don’t have the patience to take the medicine altogether,. But remember, “listening and patience are the keys to success.”. Our problems should not defeat our ability to listen and be patient. Tell me now: Would you be interested in hearing the lesson on assets and liabilities?

Bheema: OK, (frustrated tone)


Ram: An asset adds money to your pocket. Assuming you have a fixed deposit of ten lakh that pays off interest of 8,000 per month, this is an asset. On the other hand, liability is something that takes money out of your pocket Imagine you have a car that requires $10,000 in maintenance every year This is a liability

Bheema: Oh, I see

Ram: one more thing: owning a house doesn’t come under liability, though it is

Bheema: What do you mean? Going as per your definition, it should

Ram: Yes, as per definition only. In the real world, it is a safety net until your death, which means you won’t incur any costs of living once you acquire your own house. This is the only one that doesn’t fit into the definition of both assets and liabilities due to the influence of  real-life factors

Bheema: But…

Ram: What? Look at our neighbourhood itself. Those who went into debt to purchase their own house are now living happily; some of them even built another house and rented it. There is nothing much to think about, unlike the complex topics of Personal Finance

Bheema stands up and says he is now more relaxed than earlier, though an unknown fear is holding him back. The fear of what is going to happen? Whether this formula works or not? etc. He confidently walks towards his house, also with slight fear, because even the greatest minds have failed sometimes.

Ram is confident that his friend will come out of these struggles and be well financially. Of course, he also wants his friend not to earn in any illegal ways. Ram looks at the sky and sees a ray of hope as he realizes the sky god It says, “Everything will be fine because your friend has grasped the lesson of assets and liabilities very well.”

Dear Readers

If you wish to read our other blogs the saving myth

If you wish to read a blog from another website public financial management


1. What is an asset?

Asset is something in which you put your money and give returns accordingly
Eg: Gold

2. what is a Liability?

Liability is something in which we put our money which in turn takes money from our pocket
Eg: A car, takes out our money and its maintenance becomes a regular expenditure.

3. Mention More examples of assets and liabilities.

Assets: Gold, silver, shares etc
Liabilities: Mobile phones, Branded clothes etc

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